Banking/business Advice

[Arrods]

An acquaintance runs a limited company. Her business is doing well and her business current account has a very healthy cash surplus (lucky her!). But, (a) should she not be putting some of the money somewhere to earn interest and (b) what if the bank goes under; is she protected against financial loss (at least up to a certain amount)? And, if there is any protection, should she not be spreading the sums around different banks (or other institutions)? Any advice welcome - it's just not my scene!

[ubasses]

From the FSCS site
2.5. Is a charity covered if the bank or building society it holds money with fails?

FSCS protects private individuals and small to large businesses including
charities up to the deposit limit of £75,000.

So yes she will be protected. If she has over that amount it will need to spread over unconnected financial institutions. I would have thought that her Accountant would be giving her this sort of advice.

[Arrods]

Thanks ubasses.

[Peter Pedant]

75k on each account
Banks going bust are pretty rare to be honest

as for accountants giving advice all mine ever says is " hmm you will have to take advice on the tax effect of that "

[venator]

If she's getting less than 1% on her current account, she could open an account with a well publicised high street bank starting with S - she'd get 3%

[ubasses]

Not as a Business customer Venator, there is a monthly fee for Business Accounts.